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Joe Springer started The Wall Street Exclusive to help you make informed decisions so that you can succeed in the market: streetexclusive.com Check out his record picking stocks: http://seekingalpha.com/article/1896981-6-doubles-in-a-row-and-2014s-top-pick Please follow Joe on Twitter and... More
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  • Interview With Telkonet CEO Jason Tienor

    Watch the full interview here.

    On Thursday afternoon we were thrilled to have Telkonet (OTCQB:TKOI) CEO Jason Tienor in for an interview over Skype.

    Telkonet is an intelligent automation company that provides networked services for large commercial and residential buildings and facilities. Its services provide energy and operational savings as well as added value for its customers.

    Some highlights from the interview:

    1) You took over right before the recession in 2008, and were charged with turning the company around. Where are you in that turnaround?

    "We believe that we are in the tail end of the turnaround, we have taken pretty much a battleship and gone through the exercise of doing a 180. At this point we feel like we're putting a little bit of gas in the engines and starting to pick up pace, and moving forward we see that going very well for us."

    2) You have reported two straight record quarters, increasing revenues and profits, and improving on most every other metric as well. Your CFO on the November conference call said that he expects to maintain control on costs in order to ensure continued profitability while emphasizing topline growth. Is that still the plan?

    "Absolutely. One of the things that drives a small and growing company like ourselves is top line -- we want to be that thirty, forty, fifty million company and growing, but in order to do that, you still want to do it profitably. You want to prove that you can stand on your own two feet."

    3) Can you describe your two business divisions, and the synergy between the two?

    "That entire platform of EcoSmart is built on an intelligent network, that intelligent network is the same network that EthoStream deploys. So there's a lot of crossover both in customer base and intelligence, and there's the ability to increase the ROI because you have lower costs when you deploy these networks at the same time you deploy the controls that work on that top them...the two divisions really exist because of the brand loyalty and brand penetration."

    4) EcoSmart provides energy savings, but also savings in labor, and longer equipment lifecycles. It also provides added value for your customers' customers, and allows your customers to participate in load shedding demand response programs offered by utilities, allowing your customers to negotiate lower power rates. Can you describe the value proposition for your customers?

    "The difference with us is through having intelligent controls in every room, and automated controls that can communicate directly to all the other facilities within the building. By communicating with the property management system we can tell whether there's supposed to be a guest in the room or not, thereby not implementing load-shed within occupied rooms or checked out rooms, only exerting controls to rooms that aren't going to impact anybody adversely. Plus the hotel can now participate in those types of programs."

    5) You are one of the largest players in the hospitality market in both of your businesses, you also have a lot of customers in the education market, and also address healthcare, military, utility, and other commercial markets. Can you talk about the markets you are addressing, the size of the opportunities, and the room for growth?

    "When we look at hospitality, we see probably a 15%, 17% saturation rate from guest room energy management controls aspect. Enormous market for growth there, but you look at our secondary markets like higher ed, military, public housing etc, they are not even the double digits, they are in their infancy yet, and its really where we look to take a greater share of the market."

    6) There are a number of enviable dynamics in your business -- it has growth, scales well, has subscription based revenues from captive customers, and also has barriers to entry. Can you talk about your business model, especially your ability to generate recurring revenues with high margins?

    "Before you know it you have the entire environment within your space tied to one platform, and it costs you more than you can bear to remove yourself from that platform -- to remove any one piece of it. That's the way we that look at our business model, we try to create value in each aspect of what EcoSmart is. And by creating a full solution, something that none of our competitors have provided, we've done that."

    7) In addition to your addressable markets growing quickly, you also continue to roll out new products and offer expanded services on your platform. Can you talk about your new offerings, and strategy of continually expanding the platform to offer more to your existing customers?

    "Largely in hospitality you try to create something that everyone is going to know how to use by default, and that's what hoteliers look for, that their son or their grandma could all use it, so you don't necessarily have the most beautiful piece of equipment, but they're not looking for beauty, they're looking for making sure it can be used. We've got that, we've had that product on the market, and it's one of the leading products that we have. But the introduction of this new wireless thermostat not only reaches a new area of the market, the high-end area within hospitality and other commercial spaces, but it also gives us access to new markets like consumer and residential."

    8) You are in a field that requires a lot of technical expertise, support, R&D, and relationships, and it is not very easy for new players to enter. But with high such nice margins in your business there will always be competition, can you talk about what sets Telkonet apart from the competition?

    If they like what they have, and they've ingrained it in throughout their operations, that's what they are going to keep. If we can keep innovating and providing greater value, so beyond just saving energy, by extending the life of their product, by lowering the cost of energy for them, these are the things that create barriers for competitors to enter into the market very easily.

    9) You are profitable now, have about $1 million in the bank, and have a $2 million line of credit from a reputable Silicon Valley bank. You said at the Noble Financial conference that you were explicitly not looking to raise money. Is that still the case?

    "That is the case."

    Tags: TKOI, long-ideas
    Feb 13 3:03 PM | Link | Comment!
  • Tonix On Sale For Limited Time, Upside Intact

    I'm doing a quick write-up, and results were not perfect, but BESTFIT reported across the board improvements in symptoms and did very well in safety and side effects.

    They will begin AtEase with TNX-102 SL in PTSD and will meet with the FDA within roughly 75 days for FM, but they are cautiously expecting to move forward with the approval process.

    Trading just above cash the point is the entire upside is still intact..

    Tags: TNXP
    Sep 29 9:20 AM | Link | 14 Comments
  • Fire Away

    Lots of comments and questions on Tonix (NASDAQ:TNXP) in various places, if you have a question (and have looked and still don't know, not dying to repeat ourselves) you can ask here.

    Pre-emptively - YES, bullish as ever.

    Tags: TNXP
    Sep 14 12:21 PM | Link | 135 Comments
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